Annual Report 2005/06 - voestalpine

Divisional Reports
0 Annual Report 2005/06
DevelopmenT oF The
Key FigUres
In the 2005/06 business year, the Division
Profilform achieved an increase in revenue
by 10.4% from EUR 713.1 million to
EUR 787.1 million. Compared to the previous
business year, EBITDA improved
significantly increasing by 9.2% from
EUR 108.3 million to EUR 118.3 million and
EBIT rose substantially by 6.8% from
EUR 82.7 million to EUR 88.3 million. With
an EBIT margin of more than 11%, it was
possible to keep the profitability at the same
high level as during the previous year. It is
worth mentioning that the profits are now
evenly distributed among the most important
divisional companies (and thus indirectly
also among the individual market
regions and business sectors).
The slight decline in the number of employees
compared to the previous year to 2,650
is a result of restructuring measures at the
two divisional companies voestalpine
Präzisionsprofil GmbH (Germany) and
Nedcon Groep N.V. (Netherlands). The
appropriate steps have now been largely
completed in both companies.
aCqUisiTions
Early in the 2006/07 business year, the division
expanded its activities in Russia. In April
2006, the main divisional company,
voestalpine Profilform GmbH, acquired 80%
of the enterprise ZAO ARKADA Profil as well
as the option for the purchase of the remaining
20% within five years.
The focus of the acquired company’s activities
is the manufacture and sale of light steel
sections, particularly for the building industry
and for use in the infrastructure sector.
In addition to a production site near Smolensk,
the company has three sales offices in
Russia and a country-wide sales organization
through partners. ZAO ARKADA Profil has
about 300 employees and posted revenue of
just above EUR 30 million for the 2005 business
year, a very positive operating result.
In addition to the already existing joint venture
of the Dutch Profilform company Nedcon
SE with a Russian partner, this acquisition is
yet another important step in the expansion
process of the activities of the voestalpine
Group’s Division Profilform in Russia, in step
with the very dynamic growth of the Russian
market in this sector (15 – 20% annually).